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Housing Prices and Rentals - NYC Benchmarks
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Condo prices down 2.5 percent in NYC in October compared with a year earlier. This is one-third the decline in single-family home prices in the metro area.
| 2008 Housing Prices, NYC and Region
- Condominium prices in the area are reported as falling 2.5 percent in October compared with the same month in 2007, one-third the decline of single-family homes in the region. This is interpreted by S&P as meaning that NYC is stronger than the suburban areas.
- New York area single-family house prices fell 7.5 percent in October compared with the same month in 2007. The regional S&P/Case-Shiller Home Price Index covers New York City and 24 surrounding counties. The index is now 190.04, the lowest since February 2005 but 90 percent above the base year 2000. The 20-region S&P composite index shows a decline of 18 per cent from Octoiber 2007, with 14 of the regions with declines of 10 percent or more.
- Home prices will continue to decline through the summer, according to a recent report by McGraw-Hill Construction. A very slow recovery is expected to follow. Source: Crain's NY,
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Apartment price, Manhattan, mid-2005, average $1.3 million.
| 2005 Housing Prices, Manhattan
- Coop-condo apartments, all - mean price $1.3 million in 2Q05, up 8.5 percent from 1Q05 and 30 percent from 2Q04
- Apartments with 4 or more bedrooms - $10.6 million, up 113 percent over 2Q04.
- BLS "shelter" prices - imputed rent (= cost of housing and maintenance) - rose 21 percent from February 2001 to June 2005, half again faster than overall CPI growth during the period of 13.7 percent. For sources, click here.
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Median single-family house price growth, NYC, 2000-2004, 71.5 percent.
| 2004 Housing Price Growth vs. Income Growth, NYC
- In 2004, the median price for a single-family NYC home was 71.5 percent above the price in 2000, but average wage rates, a major component of personal income, rose only 9.6 per cent.
- The median real (inflation-adjusted) price of NYC housing in 2003 was $313,867, up from $231,922 in 2000, a 35.3 percent increase. (This increase was far greater than the growth of per capita personal income, which rose only 2.5 percent, to $40,899 in 2003 from $39,915 in 2000.).
Manhattan condo & coop prices grew much faster than average NYC wages (whichgrew 9.6 percent in 200-2004):
- Mean sales price rose to $1,004,232, up 71 percent from $710,788 in 2000.
- Median sales pricee rose to $605,859, up 52 percent from $399,000 in 2000.
- Mean price per square foot rose to $767, up 47 percent from $522 in 2000.
The best explanation for the rise in NYC (and rest-of-country) housing prices is a drop in the 30-year mortgage rate to 5.78 percent in 2004 from 8.04 percent in 2000. This meant a 26 percent increase in house-buying power based on the difference in the monthly payment.
The interest-rate drop explains $260,000 of the price increase between 2002 and 2004. The remaining $100,000 increase is not explained by economic factors and may be attributed to psychological ones, i.e., the bubble effect. For sources, click here.
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Average rent per 2-bedroom apartment, NYC, mid-1982, $625.
| 1982 Average Rental, NYC
In the Book of World City Rankings (Macmillan Free Press, 1986), New York City ranks as the city (out of 47 large cities worldwide) with the highest proportion of rental dwelling units to total, 72.6 percent. Of these rental units, some are rent-regulated, some (newer buildings) are rent-stabilized. Of the owned units, some are single-family dwellings, some are condominiums and some are apartments in cooperative buildings. Some buildings are government-owned, some are government-subsidized and some have a minimum number of low-income apartments. How the homeless are housed is another factor that varies among cities. Comparisons are therefore difficult, but:
In the Book of American City Rankings (Facts on File, 1983), the American Chamber of Commerce Researchers Association's "Inter-City Cost of Living Inidcators" is cited as the source of $625/month as the average cost of a rental unit in New York City, with the apartment defined as a two-bedroom, unfurnished, one-bathroom apartment in mid-1982. Since a two-bedroom apartment is rarer in New York than in most other cities, the comparisons may make New York look more expensive than it is. The 1982 figure was an incraese of 16 percent over the previous year. (See BACR, p. 118.)
in 1982 the figure for New York City was third behind Jidda at $800/month and Hong Kong at $750/month. (See BWCR, p. 592.)
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